Fact Pattern 42-2​ Ben, an Accountant for AirLift, Inc., a Ride Service, Learns

question 66

Multiple Choice

Fact Pattern 42-2​
Ben, an accountant for AirLift, Inc., a ride service, learns of undisclosed company plans to distribute a new app. Ben buys 10,000 shares of AirLift stock. He reveals the company plans to Carly, who buys 5,000 shares. Carly tells Don, who tells Erwin, and each buys 1,000 shares. They know that Carly got her information from Ben. When AirLift publicly announces its new app, Ben, Carly, Don, and Erwin sell their stock for a profit.
-Refer to Fact Pattern 42-2. If Ben is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of AirLift stock was​

• A) ​a forward-looking forecast.
• B) ​not material.
• C) ​not yet public.
• D) ​not yet true.

---

Definitions:

Open-ended Question

A type of question that allows for a free-form response, rather than limiting to predefined options.

Hospital

An institution providing medical and surgical treatment and nursing care for sick or injured people.

Admission Interview

The initial discussion between a patient and healthcare provider upon entering a hospital or clinic, aimed at gathering health information.

Attentively Listening

Actively engaging and focusing on what someone else is saying, both verbally and non-verbally.